When you tax “the rich,” you tax business. That’s not going to help a struggling economy, but that’s where we’re going. The TaxProf reproduces a great Congressional Budget Office chart that shows how how business income has moved from corporate returns to individual returns, mostly through the use of “pass-through” entities like S corporations, partnerships and LLCs:
Remember when the IRS Commissioner said they are up against sophisticated criminals? Not so much, From the LA Times:
Authorities arrested 11 people and seized piles of cash, guns and vehicles Thursday following an investigation into an alleged $1-million tax fraud scheme operated by a Long Beach street gang.
Thursday’s arrests were the result of “tedious investigative work,” and targeted the Baby Insane Crips, as well as family members and acquaintances, according to Long Beach Police Chief Jim McDonnell. Gang members allegedly used stolen Social Security numbers and other personal information to file false tax returns and then funneled refunds to family members and acquaintances.
When the “Baby Insane Crips” can defeat your financial controls, your controls aren’t that good. Related: Russ Fox, Why Rob Banks?
Indictment of St. Louis CPA unsealed. The indictment of St. Louis-area CPA Frank “Tiger” Zerjav has been made public. Mr. Zerjav survived an IRS attempt to shut down his practice via civil injunction. This is much more serious, alleging the use of falsified Quickbooks files to conceal taxable income.
Anthony Nitti, The Top Ten Tax Cases Of 2012, #4: S Corporation Reasonable Compensation – How Much Is Enough?. The much discussed Watson case.
Christopher Bergin, Fool’s Gold and Loopholes:
There are no silver bullets that can fix the fiscal distress facing our nation. The fact that our politicians are trying to convince us to the contrary is not productive and shows that they are small leaders. Unfortunately for us, the chances that leaders who think small can solve big problems are not good.
It’s not about solving our problems, to them.
It would make putting up with the politicians easier, anyway. Dude, Should Marijuana Be Legalized and Taxed? (Howard Gleckman, TaxVox)
That makes it a better Friday: Robert D. Flach’s Buzz, SPECIAL FRIDAY EDITION
News you can use: The Simpsons’ Montgomery Burns explains (sorta) the fiscal cliff (Kay Bell)
Cruel and unusual punishment: Brazil Prison Gang Conducted 10-Hour Conference Call (Via Going Concern). Egads. I’d rather face thumbscrews.
If she were in Congress, I would believe it. Ex-Chelsea selectwoman accused of tax fraud claims she is illiterate. A novel tax evasion defense.